Massachusetts-based real estate investment trust (REIT),
Winthrop Realty Trust (
, recently obtained a first mortgage loan worth $40 million,
bearing an interest rate at LIBOR plus 11.5% including a 0.50%
LIBOR floor rate. The loan has one 12-month extension opportunity
and will mature on November 15, 2014, subject to customary
BRANDYWINE RT (BDN): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
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The company secured the loan for 67 condominium units at
Queensridge Towers in Las Vegas, Nevada. Concurrently, Winthrop
Realty took a loan worth $25 million from KeyBank National
Association for Queensridge. The KeyBank loan is secured by the
Queensridge loan and bears an interest rate at LIBOR plus 4.0%.
Separately, Winthrop Realty announced the acquisition of a
multifamily property for $17.5 million. The 284-unit property,
located in Greensboro, North Carolina, is currently 96% leased.
Additionally, in order to expand its vintage housing portfolio,
Winthrop Realty entered into an agreement with its joint venture
partner in a vintage housing venture. Under the deal, the
entities will construct a low-income housing tax-credit apartment
community in Snohomish County, Washington. On completion of the
fifth project for this venture, the community will consist of 204
units and will bring the number of properties under the venture
to a total of 5,485 units.
Winthrop Realty engages in the ownership and management of real
estate and real estate-related financial instruments such as
CMBS, bonds, REIT preferred and common stock. The company
reported a FFO (funds from operations) of 58 cents a share in the
third quarter of 2012, substantially beating the Zacks Consensus
Estimate of 31 cents. As of September 30, 2012, the company had
cash and cash equivalent worth $159.3 million and $353.5 million
of total debt outstanding.
Winthrop Realty carries a short-term Zacks #3 Rank (Hold). Also,
we have long-term Neutral recommendation on the stock. One of its
Brandywine Realty Trust (
, carries a short-term Zacks #2 Rank (Buy).
Note: FFO, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization and
other non-cash expenses to net income.